HB 1753 -- Small Businesses

Co-Sponsors:  Gratz, Whorton, Shoemaker (8)

This bill states that, prior to submitting proposed rules for
adoption, amendment, revision, or repeal, any state agency will
determine whether the proposed rules affect small business.  If
they do, the agency must consider the practicality of less
restrictive alternatives that could be implemented to achieve the
same results as the proposed rule.  If the proposed rules affect
small business, the agency must consider creative, innovative, or
flexible methods of compliance for small businesses and prepare a
small business impact statement which will be submitted with the
rules to the Small Business Regulatory Fairness Board prior to
providing notice of a public hearing.  The bill outlines the
requirements of the impact statement.

These requirements will not apply to federally mandated
regulations that afford the agency no discretion to consider less
restrictive alternatives.

For any proposed rules that affect small business, the agency
will also submit a small business statement to the board after a
public hearing is held.  The bill outlines the requirements of
the statement.

The bill establishes the Small Business Regulatory Fairness
Board, which will be a Type I Agency within the Department of
Economic Development.  The bill requires that the department
provide staff for the board.  The bill outlines the board's
responsibilities as well as the membership of the board.

The bill allows any affected small business to file a written
petition with the agency that has adopted rules, including rules
adopted prior to the bill's effective date.  The bill explains on
what grounds a rule can be objected to.  Upon submission of a
written petition, the agency must forward a copy of the petition
to the board and to the Joint Committee on Administrative Rules.
Within 60 days of the receipt of the petition, the agency will
determine whether the impact statement or public hearing
addressed the actual and significant impact on small business and
will submit a written response of the agency's determination to
the board.  Any small business may appeal the agency's
determination to the board.  The bill outlines the reasons on
which the board may base its decision regarding a small business
appeal of the agency's determination.

The bill requires each agency to submit to the General Assembly
and the board, by June 13 of each odd-numbered year, a list of
all rules which affect small business, a report describing the
specific public purpose or interest for adopting each rule, and
any other reasons that justify its continued existence.  The
General Assembly may take action in response to the report as it
finds appropriate.

The bill requires the board to provide to the head of each agency
a list of any rules adopted by the agency that affect small
business and have generated complaints or concerns.  Forty-five
days after being notified by the board of these rules, the agency
is required to submit a written report to the board in response
to the complaints or concerns.  The board may solicit testimony
at public meetings regarding any report submitted by an agency.
The bill requires the board to submit an evaluation report to the
Governor and the General Assembly regarding these issues.

The bill outlines occasions when an agency will waive or reduce
any administrative penalty or administrative fine for violation
of any statute, ordinance, or rules by a small business.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:02 am